Overnight, people have fled the high yielding currencies into USD. NZD for example has gone from 0.935 to 0.915 over the period of 24 hours.
Commodities has gone down again, and the same is true for oil.
In general, after an initial market bottom, there will be a strong "rebound", something we call a bear rally. The quick money will enter the market and just as quickly exit the market. This time, the bear rally has lasted some 3 months since March 09.
The last time I bought a little put was in Apr 09, and it has lost all of its value thus far....
However, I'm still overall bearish on the current market situation, coming from investigation of past market crashes. This said, during the 1929 crash, the bear rally lasted 6 months, though the % increase was less than what we had encountered today. Granted, the number of stock players are alot less and information flow plus availability of stock brokers more limited then. What doe this say?
I'm just saying be prepared to exit your portfolio, and maybe again to buy a little put. Thats my intent anyway.
By the way, during a recession, gold and silver are the ones which gain the most. For the past day, gold and silver went down 5%.
Its really weird but the demand for USD is stronger than for gold and silver during this short period. This might mean many things, but the first thing that comes to mind is that people are still not expecting a recession.
As Buffett said, "be fearful when people are greedy, and be greedy when people are fearful". People are not fearful yet. just careful.